Today’s economy calls for changes in managing IT spending and the report walks through new approaches to managing procurement, contract negotiation, operation cost management, equipment retirement and more.

I believe that one of the biggest mistakes companies make is not [...]]]> I ran across this very interesting Gartner Research publication and thought I should share.

Today’s economy calls for changes in managing IT spending and the report walks through new approaches to managing procurement, contract negotiation, operation cost management, equipment retirement and more.

I believe that one of the biggest mistakes companies make is not being proactive in planning for a “recession” budget and once they are hit by the recession, the only way to balance the books as it were is to make the hasty decision to cut personnel in an effort to appease the market.

In many cases cutting costs revitalizes profits but these short-term cuts could have dire long-term consequences. Too often the decision for layoffs is a knee jerk reaction to an overwhelming financial situation that will have a big psychological impact on the company.

The 6-Step Process

1. Don’t Wait for the Cost-Cutting Mandate from Management.
2. Choose the Best and Brightest IT People for the Team.
3. Don’t Allow Finger-Pointing or Second-Guessing.
4. Enlist an Internal Auditor as Scorekeeper.
5. Report Results on a Weekly Basis.
6. Identify a Liaison From the Legal Department.

Recommend Reading:

• Smart IT Actions for Tough Times
• Cutting IT Budgets: Tactics a Survival Guide
• Research Collection: Cost Containment
• Spend Less, Get More: 25 IT Cost Containment Techniques